Abstract

This research investigated perils of consumers’ skepticism towards online advertising and the remedial role of Islamic advertising ethics in overcoming the perils. To test the proposed hypotheses, data were collected from 291 university students in three lags. Results indicate that all three ad characteristics predicated skepticism towards online advertising. It was also found that skepticism towards online advertising mediated the relationship between all three ad characteristics and the ad avoidance behaviour. An important finding came from the role of Islamic advertising ethics. It was found that Islamic advertising ethics moderated the relationship between skepticism towards online advertising and ad avoidance such that higher the Islamic advertising ethics, weaker the relationship between skepticism towards online advertising and ad avoidance. The study offers originality by extending the applicability of Stimulus-Organism-Response (SOR) paradigm to the domain of skepticism towards online advertising and is one of the first studies to empirically investigate the role of Islamic advertising ethics in overcoming perils of skepticism.

Highlights

  • AND BACKGROUNDAdvent of online advertising traces back to 1994 (Kaye & Medoff, 2001) when the first banner advertisement was displayed on the internet

  • The amount of time and money spent by consumers on the internet has increased (Morris, 2013) and focus of the firms on online advertising increased (Interactive Advertising Bureau, 2013)

  • This study focuses on consumers skepticism towards online advertising, by buildings upon SOR

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Summary

Introduction

Advent of online advertising traces back to 1994 (Kaye & Medoff, 2001) when the first banner advertisement was displayed on the internet. The amount of time and money spent by consumers on the internet has increased (Morris, 2013) and focus of the firms on online advertising increased (Interactive Advertising Bureau, 2013). In 2017, the worldwide amount spent on online advertising was about $209 billion as compared to $178 billion spent on television advertisements (MAGNA, 2018). Contrary to the sharp increase in online ad spending, extant research found that majority of consumers do not trust the advertisements (Alwitt & Prabhaker, 1992; Mittal, 1994). Users may print articles for educational and research uses only, provided the original author and source are credited in the form of a proper scientific referencing

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